Sarepta Therapeutics Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Sarepta Therapeutics (NASDAQ:SRPT) announced on October 29, 2021, equity awards for 17 newly hired employees as part of its 2014 Employment Commencement Incentive Plan. The total awards include options to purchase 15,025 shares and 7,975 restricted stock units (RSUs). The exercise price of the options is set at $79.13 per share, aligned with the stock's closing price on the grant date. Options will vest over four years, while RSUs will vest annually over the same period, contingent on continued employment.

Positive

• Sarepta expanded its team with 17 new hires, enhancing workforce capabilities.
• The equity awards can motivate employees to align their interests with shareholders.

Negative

• The significant equity awards could dilute existing shareholders' ownership.
• High exercise price of $79.13 may deter current employees from exercising options if stock price does not increase.

CAMBRIDGE, Mass., Oct. 29, 2021 (GLOBE NEWSWIRE) -- Sarepta Therapeutics, Inc. (NASDAQ:SRPT), the leader in precision genetic medicine for rare diseases, granted equity awards on October 29, 2021 that were previously approved by the Compensation Committee of its Board of Directors under Sarepta’s 2014 Employment Commencement Incentive Plan, as a material inducement to employment to 17 individuals hired by Sarepta in October 2021. The equity awards were approved in accordance with Nasdaq Listing Rule 5635(c)(4).

The employees received, in the aggregate, options to purchase 15,025 shares of Sarepta's common stock, and in the aggregate 7,975 restricted stock units (“RSUs”). The options have an exercise price of $79.13 per share, which is equal to the closing price of Sarepta's common stock on October 29, 2021 (the “Grant Date”). One-fourth of the shares underlying each employee’s option will vest on the one-year anniversary of the Grant Date and thereafter 1/48th of the shares underlying each employee’s option will vest monthly, such that the shares underlying the option granted to each employee will be fully vested on the fourth anniversary of the Grant Date, in each case, subject to each such employee’s continued employment with Sarepta on such vesting dates.

One-fourth of the RSUs will vest yearly on each anniversary of the Grant Date, such that the RSUs granted to each employee will be fully vested on the fourth anniversary of the Grant Date, in each case, subject to each such employee’s continued employment with Sarepta on such vesting date.

About Sarepta Therapeutics
Sarepta is on an urgent mission: engineer precision genetic medicine for rare diseases that devastate lives and cut futures short. We hold leadership positions in Duchenne muscular dystrophy (DMD) and limb-girdle muscular dystrophies (LGMDs), and we currently have more than 40 programs in various stages of development. Our vast pipeline is driven by our multi-platform Precision Genetic Medicine Engine in gene therapy, RNA and gene editing. For more information, please visit www.sarepta.com or follow us on Twitter, LinkedIn, Instagram and Facebook.

Internet Posting of Information
We routinely post information that may be important to investors in the 'For Investors' section of our website at www.sarepta.com. We encourage investors and potential investors to consult our website regularly for important information about us.

Source: Sarepta Therapeutics, Inc.

Investor Contact:
Ian Estepan, 617-274-4052
iestepan@sarepta.com

Media Contact:
Tracy Sorrentino, 617-301-8566
tsorrentino@sarepta.com 

FAQ

What equity awards did Sarepta Therapeutics grant on October 29, 2021?

Sarepta granted options to purchase 15,025 shares and 7,975 restricted stock units (RSUs) to 17 new employees.

What is the exercise price for the equity awards granted by Sarepta?

The exercise price for the options is set at $79.13 per share, equal to the closing price on the grant date.

How will the equity awards vest for Sarepta employees?

Options will vest over four years, with a quarter vesting after one year; RSUs will vest yearly over four years.

What does this equity award signify for Sarepta's workforce?

These awards serve as a material inducement for employment, potentially enhancing employee retention and motivation.

How might these equity awards impact Sarepta's shareholders?

The equity awards could lead to dilution of existing shareholders' ownership.